[Bioconversion] Gasification in the Global news

[Peter Singfield]

Look at what just snuck up at us all ---

"The facility in Erdos will produce mostly diesel oil, plus liquefied
petroleum gas (LPG), naphtha (a volatile, flammable liquid hydrocarbon
mixture), and hydroxybenzene"

Cute!!

And the "meat":

"On completion, it will be the largest facility in the world producing
liquids from coal using a technology known as direct gasification"

Direct gasification?? Quick -- google that term!!

Read the following -- prepare for being shocked -- 

The "old" list was never so caught with pants down!!

Peter/Belize


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World's first coal-to-oil mass converter due to start operation this year

Towering above the sweeping grasslands of Erdos, in north China's Inner
Mongolia Autonomous Region, two 60-meter-high cylindrical structures stand
out against the skyline. 

The structures — reactors for liquefying coal — are part of a project to
mass produce desperately needed fuel oils from China's rich coal resources. 

More than 10,000 workers from across China are constructing the massive
project, the first industrial facility in Ejin Horo Banner. 

"The project is in its final stage of construction and will start
production late in the year," said Wang Yulong, deputy manager in charge of
the coal liquefying arm of the Liquefied Coal Oil Company of Shenhua Group
Corporation Limited, the country's top coal producer. 

Coal liquefaction is a process that converts coal from a solid state into
liquid fuels, usually to provide substitutes for petroleum products. Coal
liquefaction processes were first developed in the early years of the 20th
century but progress was hindered by the relatively low price and wide
availability of crude oil and natural gas. 

The facility in Erdos will produce mostly diesel oil, plus liquefied
petroleum gas (LPG), naphtha (a volatile, flammable liquid hydrocarbon
mixture), and hydroxybenzene. 

On completion, it will be the largest facility in the world producing
liquids from coal using a technology known as direct gasification. 

"Unlike South Africa's Sasol which produces transport fuel from coal in
several stages, our project in Erdos will produce liquids from coal
directly," said Wang, who remained tight-lipped about the technology his
company is using. 

Indirect liquefaction, the technology used by Sasol, calls for gasification
of the coal in the first place, purification of the gaseous raw material
before reaction takes place, and a series of adjustments to the proportion
of hydrogen and oxygen monoxide before liquids can be produced. 

Listed as a key state project to help deal with China's petroleum security
concerns, the massive Erdos coal liquefaction facility began construction
in August 2004 with the blessings of China's top leaders. 

During an inspection tour in June 2006, Chinese Premier Wen Jiabao called
the project a major scientific and technological experiment. 

With a budget of 12.3 billion yuan and an annual production capacity of
five million tons of oil, the project will be completed in two stages. In
the first phase, three production lines will be installed. 

"We're installing the first production line and its infrastructure," said
Wang. "On completion, the line will be able to process annually 3.45
million tons of coal into 1.08 million tons of oil, including 720,000 tons
of diesel oil." 

Before starting the project, Shenhua successfully trialled technology at a
specially built converter in Shanghai, according to Wang. 

"The project in Erdos is about 1,000 times the size of the Shanghai model,"
said Wang, claiming it would be both environmentally friendly and lucrative. 

Preliminary estimates show 3.4 to 3.5 tons of coal could produce a ton of
oil, and if the price of a barrel of crude remains above 35 U.S. dollars,
the facility will be profitable, said Wang. 

The coal liquefaction project is big on recycling. Workers have constructed
two 100,000-kw power plants for generating electricity from burning grease
stain, and a sewage treatment plant that will go into service in October. 

Industry observers say the Erdos project is significant to China's food and
energy security. 

"The efficiency of conventional coal use is very low, but the profits from
coal-oils can be much higher," said an expert surnamed Wu. "This takes away
the need to process grain such as maize into ethanol." 

Shenhua Group Corporation Limited is a 100 percent state owned venture that
came into being in 1995. Its scope of business ranges from coal, power,
heat, coal-liquefied oils, coal-based chemical industries and railways to
ports. 

It produced 203 million tons of coal last year and was the first enterprise
whose coal output exceeded 200 million tons in China. 

Coal accounts for more than 84 percent of China's energy
reserves.Statistics provided by the Land and Resources Bureau of Inner
Mongolia Autonomous Region show that proven coal reserves in the region
exceed 500 billion tons, double that of Shanxi Province and elevating Inner
Mongolia to the top rank in China in terms of coal reserves. 

Many believe coal-to-liquid projects are the most practical way for China
to achieve self reliance in oil supply. 

In the meantime, constantly rising oil prices have prompted the coal-based
chemical industry to flourish in a bid to find alternatives for petroleum
in China, the world's fourth-largest economy. 

Oil prices in the international market currently hover around 70 U.S.
dollars a barrel. 

To avoid a possible overheating in the coal-based chemical industries,
however, China raised the threshold for projects converting coal to liquid
fuel last year, for fear that excessive development of the fossil fuel will
pollute the environment and strain water supply. 

On July 7, 2006, the National Development and Reform Commission (NDRC),
China's industrial watchdog, issued a circular requiring local governments
to tighten control of new coal liquefaction projects prior to the
completion of the national development program for the coal liquefaction
industry. 

The government will not approve coal liquefaction projects with an annual
production capacity under three million tons, said the commission circular. 

Source: Xinhua 

http://english.people.com.cn/200706/22/eng20070622_386664.html